Rent or lease?
What is the difference between rent and lease? Explain to your students and then give examples of use.
Rent and lease, or rental agreements and lease agreements, are both designed to allow one person to use something temporarily and for a fee to another person. But what exactly is the difference?
You don't get any income from renting
- When you rent something, you can use it for a clearly defined fee. However, you do not have the right to generate income from the rented property.
- An example for the school could look like this: someone rents an apartment a house with a piece of land. He starts farming on this property and selling the products, right? he finds natural resources, mines gravel or offers services on the rented land at.
- In the case of a lease, he is not entitled to the income from these activities. If he wants to use the property or the apartment for commercial purposes, he must conclude a lease agreement.
- Explain to younger students that vegetables grown for household use or for homework Computers are not part of commercial use and are therefore not a problem in a rented apartment represent.
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When you lease, you make a profit
- However, if you lease an apartment, plot of land, a house or a bar, you have the right to generate income. The more precise conditions are regulated in the lease agreement.
- Typical areas in which the operators of a business lease something are gastronomy and agriculture.
- As you do distinction for your students, you can include examples of someone leasing a bar, vineyard, or office space to work. The lessee is entitled to the income.
- In the literature there is often the term "fruiting" to which the tenant of a thing is entitled. Do not open up the distinction with this term, because otherwise the students can easily get the impression that the rent is only used in agriculture.
- "Fruiting" can be translated as "yields and products", which also includes, for example, the yield from a service.
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